Identity verification is often used by businesses and governmental agencies to ensure that subjects provide information that is uniquely associated with their real identity. Certain forms of identity verification may rely on physical or documentary documents, such as a driver's license, utility bill, etc. However, many online situations exist where physical documentary verification is not feasible. In such cases, non-documentary information can be provided by a subject and utilized for identity verification. However, fraud perpetrators may attempt to overcome the identity verification by providing synthetic, stolen, or manipulated identity information.
Knowledge-based authentication (KBA) is an authentication process that can provide enhanced security and can be effective in thwarting fraudsters. KBA is a process in which the subject is asked to answer at least one question based on the subject's own knowledge. A good KBA question should not be easily guessed or determined through research, and it should have only one correct answer that a subject can easily remember. The form and content of the KBA question, therefore, can vary widely, with a corresponding wide range of usability and effectiveness.
Balancing the threats of identity fraud with efficient identity verification service for legitimate clients continues to present significant challenges for businesses and governmental agencies.